Blind Creek spins out Engineer Gold Mines

Remnants of the circa 1920s mill building at the Engineer Gold Mine project in northwestern British Columbia.

Blind Creek Resources Ltd. June 1 completed an arrangement to spin its Engineer gold mine project into Engineer Gold Mines Ltd., a Toronto Venture Exchange listed subsidiary that will advance exploration and development of the high-grade gold mine project in northwestern British Columbia.

Since that time, there have been various hand mining and bulk sampling operations on the property. In 2011, BCGold Corp. refurbished a 30-ton-per-day mill delivered to Engineer in 1994 and ran a 246 metric ton sample that averaged 16.9 g/t gold.

As a subsidiary of Blind Creek Resources, Engineer Gold Mines Ltd. is planning to conduct a significant exploration, mine dewatering and test-mining and milling program on the high-grade gold property this year.

As a result of the spinout, Blind Creek shareholders are entitled to receive one Engineer Gold Mines share for each Blind Creek share held.

With the Engineer gold mine moved into a separate company, Blind Creek will focus on exploration of its Blende zinc-lead-silver project, which is located north of ATAC Resources Ltd's Rau project in the Yukon and AB zinc-lead property in the Mackenzie Mountains of western Northwest Territories.